Monday 22 April 2019

US posts biggest monthly deficit on record for February

US President Donald Trump. Photo: Getty
US President Donald Trump. Photo: Getty

Katia Dmitrieva and Laura Davison

The US posted its biggest monthly budget deficit on record last month, amid a 20pc drop in corporate revenue and a boost in spending so far this fiscal year.

The budget gap widened to $234bn (€207bn) in February, compared with a fiscal gap of $215.2bn a year earlier. That gap surpassed the previous monthly record of $231.7bn set seven years ago, according to data compiled by Bloomberg.

February's shortfall helped push the deficit for the first five months of the government's fiscal year to $544.2bn, up almost 40pc from the same period the previous year, the Treasury Department said in its monthly budget report on Friday. The release was delayed a week by the government shutdown earlier this year.

Receipts dipped less than 1pc to $1.3 trillion in the October-February period from the previous year, while spending accelerated 9pc to $1.8 trillion.

The fiscal shortfall is widening following President Donald Trump's $1.5 trillion tax-cuts package that's weighing on receipts and raising concerns about the national debt load, which topped a record $22 trillion last month.

Bloomberg

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